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Mortgage lending sees significant rise in September

Christina Hoghton
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Christina Hoghton

Borrowers defy Brexit uncertainty to commit to a new home or a new mortgage

Mortgage lending in September 2019 reached £22.3 billion, 3.7 per cent higher than in the same month in 2018, according to UK Finance.

The financial trade association said there were a total 85,880 mortgages approved by the main high street banks in September 2019. Mortgage approvals for those buying a home were 13.5 per cent higher than a year ago, remortgage approvals were 23.4 per cent higher and approvals for other secured borrowing were 8.5 per cent higher than in September 2018,

Andrew Montlake, managing director of mortgage broker, Coreco, said: “This latest data is yet more evidence that the mortgage and property markets are in relatively good health despite the chaotic political environment.

“Remortgages are thriving as people look to lock into the lowest rates possible to weather the potential economic storm ahead.

“For many people the fact that you can lock into a 5-year fix under 1.5% offers rock-bottom borrowing rates and bullet-proof security against the volatility of Brexit in the medium-term.”

Managing director of Benham and Reeves, Anita Mehra, added: “The latest figures demonstrate a very real appetite for homeownership across the UK and mark the sixth consecutive month we’ve seen mortgage approval levels exceed a healthy 42,000.

“This suggests that despite our political system continuing to crumble from the inside out, the Brexit ice is starting to melt when it comes to buyer sentiment and their intent to purchase.

“While we may have to wait until the other side of the festive break to see this intent materialise into actual sales, it bodes well for the wider market given that our future in or out of Europe is yet to receive any concrete stamp of certainty.”